Jeremy Corbyn has dismayed his pro-European MPs by insisting he will not accept a policy of remaining in the single market, sources have told Sky News.

The Labour leader addressed his party in a closed meeting on Monday night intended to set out his priorities for the year, in which he attacked the Prime Minister's "pointless and lacklustre reshuffle" and claimed Labour was a "government-in-waiting".

But when asked about his party's position on Europe - on which it remains split - MPs revealed he said single market membership was tantamount to staying in the EU.

One said: "Jeremy said that when people voted to leave the EU, they voted to leave the single market. Single market membership requires us to be members of the EU."

Other MPs backed up the account and another said: "Corbyn again claimed that no country can be in the single market but outside the EU - clearly Norway needs to get in touch."

A former Labour minister, who did not wish to be named, told Sky after the meeting: "Jeremy needs to listen to the views of party members - the single market is vital and he's wrong to take it off the table."

Chuka Umunna, who is pushing for his party to take a pro-single market stance, is reported to have left the meeting early.

The party's policy is that Britain must leave following the referendum result, but should stay in the single market and customs union during a transition period, while negotiating a free trade deal with the EU.

However dozens of Labour MPs want Britain to stay in the EU in perpetuity, and deputy leader Tom Watson has expressed support for a second referendum. Some hope to team up with rebellious Conservatives to inflict defeats on the Government.

The overwhelming majority of Labour members - of which there are nearly 600,000 - are also pro-EU - 87% want to stay in the single market and customs union according to a recent poll.

But MPs in Labour's traditional heartlands, where many voted to Leave, have been concerned that appearing anti-Brexit and pro-free movement will alienate their supporters.

The party's ambivalence was regarded as a vote-winner at the General Election last year.

Two out of nine questions at the meeting were about the single market, but several MPs made interventions. Mr Corbyn's address to the hour-long meeting was about austerity, and in particular the impact of spending cuts on the NHS.

He was also asked if he would engage with the Jewish community about anti-Semitism, to which he briefly said he would. MPs said he spent more time talking about the party’s environmental policy and about Donald Trump.

Mr Corbyn has refused to attend a meeting arranged for tomorrow by the Scottish National Party aimed at avoiding a so-called "hard Brexit". The Liberal Democrats and Plaid Cymru MPs will attend the gathering in the House of Commons.

In a letter to the SNP's Westminster leader Ian Blackford last Friday, Mr Corbyn said the single market was "not a membership club".

A spokesman for Mr Corbyn said on Monday: "We want to retain the benefits of the single market through negotiations. The single market isn't a membership club. It is an economic area with which we wish to trade and have full tariff free access."

Labour sources supportive of Mr Corbyn said "confusion arose" about single market membership because countries such as Norway - cited by many Labour MPs as a possible model for Britain post-Brexit - have negotiated access to the single market in return for "accepting the majority of the rules but, for example, have opted out on fishing".